May 31, 2025
May 2025 ESOP Roundup: Key Allotments & Grants Updates
Major companies boost employee equity in May 2025 with fresh ESOP allotments and grants across banking, FMCG, and industrial sectors. Read to know more.
June was a landmark month for ESOPs in India—marked by regulatory reforms, large-scale allotments, and buybacks that reshaped ownership structures across the startup and corporate landscape. From SEBI's game-changing move to protect founder ESOPs post-IPO, to companies like Pine Labs and Darwinbox executing high-value grants and buybacks, the momentum around employee ownership has never been stronger.
In this edition of Fables of ESOPs, we cut through the noise and bring you a crisp monthly roundup of ESOP actions that mattered—who granted what, which firms did ESOP buybacks, and how equity strategies are evolving as companies gear up for scale, exits, or IPOs - highlighting the growing role of equity in attracting, retaining, and rewarding talent across industries.
Let's dive in.
In a landmark reform announced on June 18, SEBI now allows startup founders to retain and exercise ESOPs even after being classified as promoters—provided the grants were made at least one year before filing the DRHP and are disclosed in it. This change removes a long-standing hurdle that forced many founders to restructure cap tables pre-IPO. The move has been widely applauded across India’s tech and investor ecosystem for aligning regulatory norms with startup realities and easing public listing transitions.
Capillary Technologies received board approval to launch a ₹2,250 Cr ($265 Mn) IPO, comprising ₹500 Cr ($59 Mn) in fresh issue and ₹1,750 Cr ($205 Mn) through offer for sale. In preparation for the listing, the company expanded its ESOP pool by 123%—from 32.6 lakh to 72.91 lakh options—now representing 9.04% of its total share capital. The expanded pool is estimated to be valued at ₹212 Cr out of a total ESOP pool worth ₹384 Cr. Additionally, $20 Mn from its earlier $140 Mn Series D round was earmarked for ESOP-related payouts.
Tata Consumer Products allotted 4,368 equity shares under its TCPL-Share Based Long Term Incentive Scheme 2021. Following this allotment, the company’s paid-up equity share capital increased from ₹98,95,06,778 to ₹98,95,11,146 as of 09 June 2025.
InterGlobe Aviation (IndiGo) allotted 9,409 equity shares to eligible employees under its ESOP 2015 scheme at a face value of ₹10 per share. The shares are fully fungible, with no lock-in period, and carry equal rights as existing listed shares. The allotment follows IndiGo’s record Q4 FY25 profit of ₹3,067 Cr, reinforcing its talent retention strategy amid a strong operational outlook.
ICICI Lombard General Insurance issued 1,71,062 equity shares on June 12, 2025, under its employee stock compensation programs. This follows earlier allotments in the same month—87,251 shares on June 9 and 2,346 shares on June 3—across its 2005 plan and newer schemes. All shares carry a face value of ₹10 each and form part of the company’s long-term incentive structure.
Greaves Cotton allotted 10,000 equity shares on June 18, 2025, under its ESOP 2020 at an exercise price of ₹2 per share, generating ₹20,000 in proceeds. The shares rank pari-passu with existing equity and reflect a minor increase in paid-up capital, now totaling ₹46,55,85,470 across 23,27,92,735 equity shares. The impact on shareholding and EPS dilution is minimal.
On June 24, 2025, Eureka Forbes allotted 5,659 equity shares under its ESOP. Following the allotment, the company’s paid-up share capital increased from ₹193,48,61,570 (19,34,86,157 equity shares of ₹10 each) to ₹193,49,18,160 (19,34,91,816 equity shares of ₹10 each).
Between January 1 and June 25, 2025, Pine Labs allotted 2.32 Cr shares to CEO Amrish Rau under its ESOP 2025 plan, ahead of filing its draft red herring prospectus. In total, 6.16 Cr shares were granted under the plan, with 3.5 Cr already vested. Pine Labs filed for an IPO to raise up to ₹2,600 Cr via fresh issue, with 14.78 Cr shares to be sold through offer for sale.
Darwinbox completed a ₹86 crore ESOP buyback, its third in four years, benefiting over 350 employees across 11 global offices. The buyback follows a $140 million funding round in March 2025 led by Partners Group and KKR, aimed at accelerating global growth and product innovation.
Global Health allotted a total of 1,10,000 equity shares on June 2025—20,000 shares under ESOP and 90,000 shares to the GHL Employees Welfare Trust under Part-B of the GHL LTIP 2024 Plan. As a result, the company’s paid-up share capital increased from ₹53,73,20,764 (26,86,60,382 shares) to ₹53,75,40,764 (26,87,70,382 shares), each with a face value of ₹2.
Nykaa, owned by FSN E-Commerce Ventures, allotted 5,23,000 equity shares to employees under its ESOP scheme. At NSE’s share price of ₹197.3, the allotment is valued at approximately ₹10.33 crore. This continues Nykaa’s consistent ESOP issuance trend, following earlier grants in February (90,500 shares) and April (17,010 shares), as well as 4.8 lakh shares allotted during Q4 FY24.
Sequent Scientific allotted 30,000 equity shares under its ESOP on June 26, 2025. Following the allotment, the company’s issued and paid-up equity share capital increased from ₹50,06,09,990 (25,03,04,995 shares) to ₹50,06,69,990 (25,03,34,995 shares), with each share having a face value of ₹2.
The narrative around ESOPs is clearly changing—from tactical HR benefit to a long-term strategic lever. With SEBI’s recent reforms offering much-needed clarity for founder equity, and a growing number of companies using stock options to reward performance and align incentives, June marked a significant step forward for equity-led compensation in India. From listed giants to soon-to-be public startups, companies are doubling down on stock options as a way to empower teams and align long-term outcomes.
Stay tuned—we’ll be back next month with more ESOP stories that are shaping the future of ownership.
